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aleksley [76]
3 years ago
9

You are the newly appointed sales manager of the Rock Computer Tablets Company and have been charged with the task of increasing

revenues. Your economics consultants have informed you that at present price and output levels, price elasticity of demand for your product is less than one. You should:
A. decrease prices.
B. increase prices.
C. hold prices constant and increase supply.
D. hold prices constant and decrease supply.
Business
1 answer:
OverLord2011 [107]3 years ago
5 0

Answer:

The correct answer is:

increase prices (B)      

Explanation:

Price elasticity of demand (PED) is the measure of how the quantity of goods demanded change, as the selling of the good change. Mathematically, it is represented as the percentage change in the quantity of good demanded divided by the percentage change in the price of the good.

Price elasticity of demand can be; greater than one, less than one, equal to one, zero, or infinite.

If price elasticity of demand is less than one, it is said to be elastic, meaning that the demand for a product is sensitive to the change in price, and an increase in price will cause a reduction in revenue by the seller, while a reduction in price results to an increase in the quantity demanded, hence increasing revenue. For example, an increase in the price of chicken, may cause consumers to go for turkey instead, leading to a reduction in the demand for chicken.

A price elasticity of demand of less than one is termed inelastic, and an increase in the price of the product does not cause a significant drop in the quantity of the goods demanded, and this is the case seen in our example, so increasing the price of the good will increase the revenue.

When PED is equal to one, it is said to be unit elastic, and it means that the quantity demanded varies proportionately with change in price. For example if the price of a product increases by 50%, and 50% of its regular buyers switch to another brand.

A price elasticity of demand of zero is said to be perfectly inelastic, and it means that the demand for a good does not change at all, irrespective of the change in price.

Finally, a PED equal to infinity (∞) is said to be perfectly elastic, and consumers will only buy the product at only one price and nothing more.

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Krol Corporation distributed marketable securities in redemption of its stock in a complete liquidation. On the date of distribu
Varvara68 [4.7K]

Answer:

The answer is 50.000 dollars

Explanation:

When a corporation completely liquidates, the corporation wil recognize a gain or loss as if the property were sold at fair market value.

Amount realizes as if sold $150,000

Less: Adjusted basis $ 100,000.

Equals: $50,000, which is the recognized capital gain.

8 0
3 years ago
If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the​ other,
grigory [225]

Complete Question:

If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that repairs only one or the other, this would be an example of __________.

Group of answer choices

A. economies of scope

B. economies of scale

C. monitoring

D. increasing transactions costs

Answer:

A. economies of scope

Explanation:

If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the​ other, this would be an example of economies of scope.

Economies of scope can be defined as an economic factor which makes proportionate savings possible as well as reducing the cost of production when products are manufactured together instead of manufacturing them individually or separately.

4 0
3 years ago
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and
Tomtit [17]

Answer:

Total PV= $25,072.57

Explanation:

Giving the following information:

Cash flows:

Cf1= $6,100

Cf2= $11,100

Cf3= $17,300

Discount rate= 15%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 6,100 / 1.15= 5,304.35

PV2= 11,100 / 1.15^2= 8,393.19

PV3= 17,300 / 1.15^3= 11,375.03

Total PV= $25,072.57

4 0
3 years ago
A residential property is greatly diminished in value because of the constant noise of jets taking off from a recently expanded
djverab [1.8K]

Answer:

A residential property is greatly diminished in value because of the constant noise of jets taking off from a recently expanded municipal airport. In order to be compensated for this loss, the owner could:

B.bring a suit alleging inverse condemnation

Explanation:

A law suit is a claim or legal problem taken to a court of law by an individual or organization rather than the authorities for a legal decision to be made. In the case above, the residential property diminished in value after constant noise of jets taking off from a recently expanded municipal airport. The loss in value is as a result of the recently expanded municipal airport and the property owner wants to be compensated for this loss.

In law, there are different terminologies and phrases that have specific meaning, some of them are as follows;

1. Inverse condemnation

Inverse condemnation is a case where a government entity takes private property or influences the value of that private property in one way or another then fails to compensate. In our case, this law suit can apply since the municipal airport is under the jurisdiction of the government and there action of expanding the airport caused a decline in value of neighboring residential property thus they should compensate the owner for this loss. The owner can bring a suit alleging inverse compensation.

3 0
3 years ago
Which is an example of someone who is cyclically unemployed?
Korolek [52]

Answer:

<em>A. autoworker who is temporarily laid off from an automobile company because of a decline in sales. </em>

Explanation:

Cyclical unemployment is <em>unemployment that occurs when full employment can not be met by the aggregate demand for goods and services in an economy.</em>

This takes place during times of decreased economic growth or times of economic slowdown.

Cyclical unemployment is directly linked to the degree of macroeconomic behavior, which is the combined or collective activity of all economically involved individuals and entities.

Instead of linear, this overall trend is cyclical-economic activity tends to increase and fall rather than always rising or falling.

7 0
3 years ago
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